Low base metal prices hurt Hudson Bay Mining

Hudson Bay Mining and Smelting has become yet another victim of lower base metal prices in the first quarter of 1990. Despite an increase in nickel, copper and zinc production, Hudson Bay’s first- quarter earnings dropped 90% from $11.9 million in 1989 to $1.3 million in 1990. The company’s revenues also dropped from $126.6 million in the first quarter of 1989 to $94.9 million. Average London Metal Exchange prices for zinc have dropped by 24% from the first quarter of 1989, while for copper and nickel, prices have decreased by 22% and 56% respectively. Meanwhile, Hudson Bay has increased production to 26 million lb. of zinc, 18 million lb. of copper, and 2.2 million lb. of nickel. This compares with production of 21 million lb. of zinc, 15 million lb. of copper, and 0.6 million lb. of nickel in the first quarter of 1989.

Hudson Bay is planning to increase production of zinc and copper at its northern Manitoba mining operations by about 10% this year, said Chairman John Ellis. According to Hudson’s parent company, Inspiration Resources (TSE), Hudson Bay also plans to reduce sulphur dioxide emissions from its Manitoba metallurgical plant. Hudson Bay Mining and Smelting (TSE) $000s Quarter ended Mar. 31 1990 1989 Revenue $94,900 $126,600 Net earnings 1,300 11,900